Silver (XAG) Daily Forecast: Double Bottom Support Near $28.70; Buy Now?

Silver price (XAG/USD) continued its downward trend, remaining under pressure around $28.95 and hitting an intra-day low of $28.71. This decline was driven by several factors, including a strong US dollar and a risk-on market sentiment.

The US dollar gained strength due to hawkish comments from Federal Reserve officials, indicating that the central bank is unlikely to start its rate-cutting cycle soon amid a resilient US economy.

Conversely, the potential escalation of geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict helped limit silver’s losses.

Looking ahead, traders are closely watching two key US economic releases: the final Q1 GDP print on Thursday and the Personal Consumption Expenditures (PCE) Price Index report on Friday.

Fed’s Hawkish Stance and its Impact on Silver Prices

Geopolitical Tensions Support Silver Prices Amid Market Uncertainty

Russia’s Foreign Ministry summoned US Ambassador Lynne Tracy, accusing the US of involvement in a violent incident in Crimea and warning of impending retaliatory actions. This escalation increases tensions between the two nations.

Meanwhile, concerns persist over potential conflict between Israel and Lebanon due to rising provocations by Hezbollah, maintaining anxiety and supporting safe-haven assets like precious metals. These geopolitical developments highlight ongoing instability, influencing market sentiment.

The geopolitical tensions, including accusations between Russia and the US over Crimea and heightened risks of conflict in Israel and Lebanon, have boosted demand for safe-haven assets like silver, supporting prices amidst market uncertainty.

Short-term Forecast

Silver (XAG/USD) remains under pressure around $28.95, with key support at $28.71. Traders should monitor the final Q1 GDP and PCE Price Index releases for further direction.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver – ChartOn the 4-hour chart, Silver (XAG/USD) remains under pressure, trading at $28.95. The pivot point is set at $28.71, indicating a critical level for market direction. Immediate resistance is seen at $29.26, with subsequent resistance levels at $29.70 and $30.17.

On the downside, immediate support is at $28.32, followed by $27.99 and $27.62. The 50-day EMA stands at $29.59, while the 200-day EMA is at $29.51.

The chart also shows a double bottom pattern, suggesting a potential buying trend. However, silver remains bullish above $28.71, and a break below this level could trigger a sharp selling trend.